State considers higher taxes on certain drinks

LANSING - State liquor officials are reexamining the classification of a pair of sweetened alcoholic beverages following resolutions calling for the action from a membership organization.

The Michigan Prevention Association passed a pair of resolutions this year that seeks to reclassify alcopops and pre-mixed alcoholic energy drinks. Currently the beverages are considered beer, but the change would not only limit where they beverages are sold, it would increase the excise tax on them as well.

In March, members of both the Michigan Prevention Association and Mothers Against Drunk Driving testified before Michigan's Liquor Control Commission in hopes of reclassifying alcopops, like Mike's Hard Lemonade, and alcoholic energy drinks, which contain caffeine and as much as 10 percent alcohol by volume, from beer to mixed spirit drinks.

"They fit the definition of both, that's the problem in Michigan," said Ken Wosniak, director of executive services for the liquor commission. "The issue first came up not too long after these products were introduced about five years ago. It was decided back then to leave things the way they were. But we're looking at this closer."

Beer is defined as any fermented alcoholic beverage derived from hops, barley or malt, and a mixed spirit drink as any beverage that contains less than 10 percent alcohol by volume and is mixed with other non-alcoholic beverages or flavoring, such as fruit juice, sugar, carbon dioxide or preservatives.

Wosniak said he and his colleagues are meeting with the attorney general's office and expects a decision to be made some time this year.

Homer Smith, the executive director of Michigan's chapter of MADD, expressed support for both of the measures, he said he hopes to see alcopops reclassified first.

"We know these alcopops are the drink of choice for those who are underage by a two-to-one margin over beer, because they don't taste like beer," he said. "Reclassifying them will make them more difficult to obtain and put them in a higher excise tax category. We know that teenagers are highly price sensitive."

Under the state's current regulations, beer is taxed at about 20-cents per gallon, while mixed spirits are taxed at more than $1.80 per gallon.

Rep. Gary McDowell, D-Rudyard, said he supported the resolutions, in addition to calling for more funding to the Department of Community Health for alcohol and substance abuse programs.

"I believe we should do anything we can to discourage young people from underage drinking," he said.

Still, not every local state legislator supports the resolutions. Rep. Kevin Elsenheimer condemned under-age drinking and applauded other efforts to combat it, but did not favor reclassifying any beverages.

"The problem is underage and binge drinking," he said. "All this would do is ask the Liquor Control Commission to take away one of the many legal products that contribute to this problem. It doesn't address the problem."